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NEW BIS LICENSE TYPES C67 ((NAC) (Notification required)) and C68 (NAC) (NO notification required) – for exports authorized under License Exception Notified Advanced Computing (NAC)
March 22, 2024
On Wednesday, October 25, 2023, the Department of Commerce, Bureau of Industry and Security (BIS) published an interim final rule (https://www.bis.doc.gov/index.php/documents/federal-register-notices-1/3369-88-fr-73458-acs-ifr-10-25-23/file) with an effective date of October 17, 2023 for most provisions. Among other actions, this interim final rule established a new License Exception Notified Advanced Computing (NAC) in § 740.8 of the Export Administrations Regulations (EAR), 15 C.F.R. parts 730 - 774. This license exception as specified under the paragraph (a) (Eligibility requirements) authorizes the export, reexport, and transfer (in-country) of any item classified in ECCNs 3A090, 4A090, 3A001.z, 4A003.z, 4A004.z, 4A005.z, 5A002.z, 5A004.z, 5A992.z, 5D002.z, or 5D992.z, except for items designed or marketed for use in a datacenter and meeting the parameters of 3A090.a.
Exports and reexports authorized under License Exception NAC to Macau or a destination specified in Country Group D:5 (in Supp. No. 1 to part 740 of the EAR), or to an entity headquartered in, or with an ultimate parent headquartered in, Macau or a destination specified in Country Group D:5, wherever located, must meet the notification requirements under § 740.8(a)(2) of the EAR and identified by License Type C67 – (NAC) Notified Advanced Computing (Notification required), which is identified in the Electronic Export Information (EEI) filing in the Automated Export System (AES) by reporting C67 and the NAC confirmation number “(A######)” in the license number block, as described further below.
License Exception NAC also authorizes exports, reexports, and transfers (in-country) to or within any destination specified in Country Groups D:1 or D:4, and transfers (in-country) within Macau or any destination specified in Country Group D:5, provided the export, reexport, or transfer (in-country) meets all of the applicable criteria identified under paragraph (b) of this section. The NAC notification requirement does not apply to exports or reexports to any destination specified in Country Groups D:1 or D:4 (other than Macau or destinations also specified in Country Group D:5) nor does it apply to transfers (in-country) to any destination under § 740.8(a)(2) of the EAR and identified by License Type C68 – (NAC) Notified Advanced Computing (No notification required).
As a result of these actions, the following changes will be made to the AES in order for exporters and authorized agents to successfully report electronic export information in the AES.
New License Code C67 (NAC) (Notification required)
An update has been made to AES to create License Type Code C67 “Notified Advanced Computing Authorized” (NAC) (Notification required).
An update has been made to AES to create new License Code C67 “Notified Advanced Computing” (NAC), which authorizes certain exports and reexports of any item classified in ECCNs 3A090, 4A090, 3A001.z, 4A003.z, 4A004.z, 4A005.z, 5A002.z, 5A004.z, 5A992.z, 5D002.z, or 5D992.z, except for items designed or marketed for use in a datacenter and meeting the parameters of 3A090.a. The notification requirements under NAC are limited to exports and reexports to Macau or any destination specified in Country Group D:5, or to an entity headquartered in, or with an ultimate parent headquartered in, Macau or a destination specified in Country Group D:5, wherever located. Transactions under NAC must meet all of the applicable criteria identified under paragraph § 740.8(a) and must comply with the restrictions set forth in paragraph § 740.8(b).
The full terms of License Exception NAC are described in § 740.8.
AES filers must adhere to the following new reporting when using C67 (NAC) (Notification required) to prevent the return of fatal errors from AES:
- Report License Code: C67 Notified Advanced Computing (NAC) (Notification required), if advanced notification was required.
- Report License Number: Report the NAC confirmation number “(A######)” received from BIS in the license number block.
- Allowable ECCNs: 3A090, 4A090, 3A001, 4A003, 4A004, 4A005, 5A002, 5A004, 5A992, 5D002, or 5D992.
- Allowable countries: All destinations.
- “.z” must be entered as the first characters to appear in the Commodity Description block for 3A001.z, 4A003.z, 4A004.z, 4A005.z, 5A002.z, 5A004.z, 5A992.z, 5D002.z, or 5D992.z.
- Allowable Export Information Codes: All except UG
- Allowable Modes of Transportation: All except ‘70’ (Fixed Transport)
New License Code C68 (NAC) (NO notification required)
An update has been made to AES to create License Type Code C68 “Notified Advanced Computing Authorized” (NAC) (NO notification required)
An update has been made to AES to create new License Code C68 “Notified Advanced Computing” (NAC) (NO notification required), which authorizes certain exports, reexports, and transfers (in-country) of any item classified in ECCNs 3A090, 4A090, 3A001z, 4A003.z, 4A004.z, 4A005.z, 5A002.z, 5A004.z, 5A992.z, 5D002.z, or 5D992.z to destinations specified in Country Group D:1 and D:4, and transfers (in-country) to Macau and destinations in Country Group D:5, for which no notification is required. Transactions under NAC must meet all of the applicable criteria identified under paragraph § 740.8(a) and must comply with the restrictions set forth in paragraph § 740.8(b).
The full terms of License Exception NAC are described in § 740.8.
AES filers must adhere to the following new reporting when using C68 (NAC) (No notification required) to prevent the return of fatal errors from AES:
- Report License Code: C68 Notified Advanced Computing (NAC) (No notification required), if no advanced notification was required.
- Report License Number: Report “NAC” in the license number block.
- Allowable ECCNs: 3A090, 4A090, 3A001, 4A003, 4A004, 4A005, 5A002, 5A004, 5A992, 5D002, or 5D992.
- Allowable countries: Destinations specified in Country Groups D:1, D:4, and D:5.
- “.z” must be entered as the first characters to appear in the Commodity Description block for 3A001.z, 4A003.z, 4A004.z, 4A005.z, 5A002.z, 5A004.z, 5A992.z, 5D002.z, or 5D992.z.
- Allowable Export Information Codes: All except UG
- Allowable Modes of Transportation: All except ‘70’ (Fixed Transport)
A complete list of all of the AES License Codes and reporting instructions for these types can be found at https://www.cbp.gov/document/guidance/aestir-appendix-f-license-and-license-exemption-type-codes
For questions regarding these upcoming AES changes, please contact the Bureau of Industry and Security at one of the phone numbers below.
Outreach and Educational Services Division (located in Washington, DC) (202) 482-4811
Office of Technology Evaluation (located in Washington, DC): (202) 482-4933
Western Regional Office (located in Irvine, CA) (949) 660–0144
Northern California branch (located in San Jose, CA) (408) 998-8806
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